Hudson Weir Shoots & Scores with Successful Sale of the London Lions Basketball Club
Background
In late July 2024, the London Lions, one of the UK’s leading professional basketball teams, found themselves in financial distress and were placed into administration. Based in Stratford, East London, the Lions have been a key part of British basketball for nearly five decades, with roots tracing back to their founding in 1977 as the Hemel Hempstead Lakers. Despite their rich history and strong fanbase, the club faced mounting financial difficulties, leading to a critical situation that required immediate intervention.
On 30th July 2024, London Lions were placed into administration by their debenture holder. Insolvency practitioners Hasib Howlader and Nimish Patel from Hudson Weir were appointed to manage the club’s affairs, regulated by the Institute of Chartered Accountants in England and Wales. Hudson Weir’s primary challenge was not only to keep the club operational but also to find a suitable buyer quickly, thereby securing the future of the team and its employees.
The Challenge
Hudson Weir faced the daunting task of navigating the London Lions through administration while ensuring a quick resolution to protect the legacy, staff, and players of the club. Time was of the essence, with the 2024/2025 British Basketball League (BBL) season fast approaching, and uncertainty looming over the team’s ability to compete in the upcoming season.
The administrators needed to find a buyer who could inject fresh capital and safeguard the club’s future. Moreover, the club’s creditors needed to be paid off, which made the stakes even higher. Despite the initial financial projections being modest, Hudson Weir remained confident that the Lions’ brand, history, and potential could attract significant interest from buyers.
Strategic Approach
The Hudson Weir approach focused on transparency and speed. The firm quickly began marketing the London Lions to potential buyers, via a targeted media campaign, highlighting the team’s rich legacy, strong community ties, and untapped commercial opportunities. Several interested parties came forward, drawn by the club’s brand potential and the growing interest in basketball across the UK.
Key to Hudson Weir’s strategy was keeping the club operational throughout the administration process, ensuring that players and staff could continue their work without interruption, while securing a buyer in time for the Lions to compete in the upcoming BBL season.
The Acquisition by Tesonet and Žalgiris Kaunas
In just under two weeks, Hudson Weir successfully facilitated the sale of the London Lions to Tesonet, a tech hub and shareholder of Žalgiris Kaunas, a prominent Euro League organisation. The deal, finalised on 14th August 2024, involved an undisclosed substantial offer and included all of the Lions’ assets, from their brand to their player contracts.
The swift acquisition was made possible through the efforts of Hudson Weir, alongside Frank Brumby of HCR Law, who worked tirelessly to finalise the sale. The administrators acted in the best interest of the creditors, securing the best possible deal for all parties involved.
Hasib Howlader, Joint Administrator from Hudson Weir, expressed his optimism:
“We are delighted to report that Tesonet / Žalgiris Kaunas is the new owner of the club. Hudson Weir managed to complete the sale in less than two weeks, ensuring the club did not falter during this period. Speed was crucial to ensure the players and staff could look forward to a bright future, and most importantly, the London Lions would be ready for the 2024/25 season.”
Howlader continued:
“Our honest approach in communicating the facts surrounding the club attracted several last-minute bidders, but Tesonet / Žalgiris Kaunas emerged as the ultimate winner in this race. The support from Frank Brumby and the team at HCR Law was invaluable in closing this deal efficiently.”
A Positive Outcome for All Stakeholders
Thanks to Hudson Weir’s leadership, the sale of the London Lions ensured that no jobs were lost, creditors received a positive return, and the club will continue to compete in the BBL. This remarkable outcome, achieved in a short period, has set the club on a path toward stability and growth under the new ownership of Tesonet and Žalgiris Kaunas.
The new owners are expected to bring fresh energy and resources to the Lions, ensuring the team remains competitive in the BBL and continues to expand its influence within British basketball. The acquisition is not just a financial success but also a triumph for the local community, as the London Lions will continue to serve as a source of pride for East London.
The Legacy and Future of the London Lions
Originally founded as the Hemel Hempstead Lakers in 1977, the London Lions have undergone several transformations throughout their history, including a relocation to Milton Keynes and subsequent rebranding as the Milton Keynes Lions, where they won their first British Basketball League trophy in 2008. In 2012, the team moved to London, becoming a central figure in the city’s sporting landscape and playing home games at the Queen Elizabeth Olympic Park.
In 2017, the London Lions expanded further by launching a women’s team in the Women’s British Basketball League (WBBL), strengthening their presence in both men’s and women’s basketball. The sale to Tesonet and Žalgiris Kaunas marks the beginning of a new chapter for the club, as they aim to build on their 47-year legacy and explore new growth opportunities.
Conclusion
The sale of the London Lions to Tesonet and Žalgiris Kaunas, facilitated by Hudson Weir, is a case study in how swift, transparent administration can lead to a successful outcome for all stakeholders. Hudson Weir’s effective management not only preserved the legacy of the club but also ensured that creditors, employees, and fans alike could look forward to a positive future.
The London Lions will continue to compete in the BBL, stronger than ever, with the backing of their new owners and the unwavering support of their passionate fanbase. Under the guidance of Tesonet and Žalgiris Kaunas, the Lions are poised to scale new heights, ensuring their place as a leading force in British basketball for years to come.
